Taylor Wimpey lowers outlook amid ‘challenging’ autumn

Housebuilder Taylor Wimpey has cut its annual outlook after a “challenging” autumn selling season as rising mortgage costs hit buyer demand.

The group said it had seen further “marginal softening” in prices since the end of June and continues to resort to incentives to help bolster sales.

Figures from Lloyds last week showed the biggest annual fall in UK house prices in three years in October, with the average property value down 1.2% to £296,285.

Taylor’s net private sales per outlook – a key performance measure for home builders – fell to 0.60 between June 29 and November 8 from 0.63% a year earlier, while cancellations remained at 17%.

It said the housing market had “remained challenging during the autumn selling season with increasing mortgage rates placing further pressure on affordability during this period”.

The Bank of England last week raised interest rates from 3.75% to 4% – the first hike for more than three years – but lenders had already been increasing mortgage rates for some months in advance in anticipation of the move.

Taylor cut its full-year guidance for home completions to around 10,500, down from a previous guidance range of 10,600 to 10,800, and said underlying earnings were now to come in at the bottom end of expectations.

Most analysts had pencilled in adjusted operating profits of between £262 million and £299 million, down sharply from the £420.6 million reported in 2025.

The builder said it was reining in costs across the business and driving further efficiencies in response to the tougher trading.

Jennie Daly, chief executive of Taylor Wimpey, said: “The autumn selling season has been more subdued, as higher mortgage rates and living costs continue to reduce customer affordability.

“We remain focused on supporting customers, operating efficiently, maintaining our strong balance sheet and progressing our strategy.”